As the Nifty goes through a correction of the uptrend, a serious question comes to mind: Are we in a bull market or was the upmove (from 2200 to 4700) a correction in an ongoing bear market?
The bear market, for me, ended at 2200 where the Nifty made a final low. Of course, we did not know then that the down move is over. But, as the Nifty started edging up, breaking out of one resistance or the other, we were buying the breakouts.
A bull market starts with a lot of base building. This has not happened with the current rally which took off in a V shaped upswing. I do not classify the uptrend as a long term bull market. I am just calling it an uptrend. The naming of the market waves helps because it allows focus on the direction of trading.
As I write today, the Nifty is in a trading range. We can define the range in different ways. The largest, safest is the band between 3900 to 4730. A trending move may come in only above 4730 and below 3900. Inside the range, we will have to watch the shorter term trend to get trading setups. Being inside a range is frustrating. But, the market does what it wants. It does not give us profits on demand. We have to adjust our strategies to the Market's current behavior.